OEL - (Otto) Multi based, Gambling Stock.

[trader10]

hey Shasta

Ouch !!! for shareholders today.....

I've decided to take the opportunity to become one today at 6 cents.

Am very positive with my purchase and am waiting on the stabilisation of the capital raising just like NIDO did.....

She will be back to normal levels in no time IMHO.

There could be some surprise news coming up before the AGM....

I like what I see....and think today was a window of opportunity for many.

cheers

[trader10]

The battle is not lost just yet folks.....


BHP farm-in deal lapses with Otto

By Upstream staff


BHP’s farm-in agreement with Otto Energy for the deep-water exploration block Service Contract 55 off south-west Palawan Island in the Philippines has lapsed.

On 22 December Australian minnow Otto entered into a conditional heads of agreement with BHP Billiton Petroleum to farm out 60% of its equity in Service Contract 55. The agreement lapsed on the 31 March as all the necessary conditions and approvals were not achieved.

Otto said that discussions with BHP in respect of Service Contract 55 are continuing despite the lapse of the heads of agreement.

http://www.upstreamonline.com/live/article175099.ece

[trader10]

Otto, BHP deal lapses


Monday, 6 April 2009

OTTO Energy’s heads of agreement with BHP Billiton Petroleum for the farm-out of a 60% stake in SC55 offshore the Palawan Basin, Philippines, has lapsed forcing Otto to restructure its capital raising plans.

The agreement lapsed after the two companies failed to finalise all necessary conditions and approvals before March 31.

However, Otto said discussions with BHP in respect to SC55 were continuing and it remained confident that a farm-out for the permit would be reached.

Under the original agreement, BHP had agreed to carry Otto through a 3D seismic program and two deepwater exploration wells to earn the stake in SC55.

Otto would retain a 25% stake in the permit and transfer operatorship of the permit to BHP.

The deepwater SC55 covers an area of 9000 square kilometres in the southwest Palawan Basin.

It holds the giant Marantao prospect, a potential multi-trillion cubic feet gas or billion barrel oil field, and the Hawkeye prospect, which could hold 456 billion cubic feet of gas or 249 million barrels of oil and appears to be a direct analogue of Shell’s Kamunsu East oil and gas field offshore Borneo.

Meanwhile, Otto’s plans to raise up to $A35 million have been scaled back to $A31.5 million.

The company is looking to raise $5.1 million through a placement of shares priced at 7c each with the first tranche of $4.3 million going to two of Otto’s major shareholders, Santo Holding and Molton Holdings. The remaining $800,000 will be taken up by Otto’s directors.

Otto will also launch a pro-rata non-renounceable entitlement issue to raise a maximum of $21.2 million.

Under the issue, which is partially underwritten by Euroz Securities to a maximum of $15.7 million, existing shareholders will be able to subscribe for three new shares for every four shares held at 5c each.

The company has already raised $5.2 million through a placement of about 73.9 million shares at 7c each to institutional investors of Euroz Securities.

Proceeds from the raising will be used to fund the company’s upcoming exploration in Italy and Argentina as well as development of the Edirne gas project in Turkey.

The raising will also be used to repay loans provided by Santo and Molton as well as loans provided by the company’s directors.

http://www.petroleumnews.net

[Rabbi]

Yes, some of these prospects in the Phillipines are "elephants" and lets hope Otto can farm them out, sooner, rather than later.

While its true that the issue of new shares will significantly dilute the equity, this is the only way for Otto to go forward. Better than bank debt, and with their cashflow they shouldn't go broke.

I bought into Otto for "thrill and drill" in the Phillipines, high risk high stakes!

Disc. Hold NZO. BPT. BOW OEL VPE BCC APX

[Rabbi]

An independent report on OEL has clarified the position Otto is in.

Because of the enforced shutdown of the Galoc field OEL had no cashflow to service their debt. Debt is now sitting at $7 million and although cashflow has resumed from Galoc it is too late to stop the Co. breaching the covenants of the loans.

Accordingly, they need to raise capital to pay back the loans before the due date, and also to provide some working capital.

The only asset they could borrow from is the Galoc field itself, however the main partner in the Galoc field has already borrowed heavily on this producing asset. It is considered that all of Ottos' other Assets would not provide sufficient security for a lender, as they are somewhat "pie in the sky".

This is the predicament Otto are in and it would be a reasonable assumption to make that any major problems with the Galoc field-such as a typhoon- could finish them off as a viable entity.

[STRAT]

An independent report on OEL has clarified the position Otto is in.

Because of the enforced shutdown of the Galoc field OEL had no cashflow to service their debt. Debt is now sitting at $7 million and although cashflow has resumed from Galoc it is too late to stop the Co. breaching the covenants of the loans.

Accordingly, they need to raise capital to pay back the loans before the due date, and also to provide some working capital.

The only asset they could borrow from is the Galoc field itself, however the main partner in the Galoc field has already borrowed heavily on this producing asset. It is considered that all of Ottos' other Assets would not provide sufficient security for a lender, as they are somewhat "pie in the sky".

This is the predicament Otto are in and it would be a reasonable assumption to make that any major problems with the Galoc field-such as a typhoon- could finish them off as a viable entity.

Excellent post Rabbi. Thanks

[trader10]

Impatience got the best of me and I'm out of this one......

Just lurking now thru May..... see what happens...

Good luck for the ones fully loaded.

cheers

[Rabbi]

Impatience got the best of me and I'm out of this one......

Just lurking now thru May..... see what happens...

Good luck for the ones fully loaded.

cheers

I think I'll hang in.

If OEL can get a good JV partner for these big permits in the Phillipines they are still in with a chance of making a comeback.

There are still a lot of "if's buts and maybe's".

[trader10]

Onya Rabbi..... ) she will be re-rated very soon IMHO

Otto confirms gas in Turkish wildcat

By Upstream staff

Australia’s Otto Energy said the Kirmizihoyuk-1 wildcat produced a combined 4.8 million cubic feet of gas a day during several tests run on the gas intervals.

Kirmizihoyuk-1 encountered gas columns over a number of zones measuring from three metres to 15 metres at depths of 330 metres to 480 metres.


Tests were run on the upper intervals and over a total perforated length of 41 metres over the last week.


The well will be completed as a future producer.


The chartered land rig has moved on from Kirmizihoyuk-1 to test the Ikihoyuk-2 discovery well. Results will be released later this week.


Otto holds a 35% stake in Edirne. The licence is operated by joint venture partners Petroleum Exploration Mediterranean (55%) and Petraco (10%).

http://www.upstreamonline.com/live/article180420.ece

[trader10]

Next week should be a very interesting time for Otto.....another box ticked..... this is building up nice and slowly......

First, Turkey gas findings then 2 top 20 shareholders buying in more. Followed by the 4 directors buying in. Confirmation of Turkey gas for production...... and now big GAZZATA1 is coming up...... ))

We already producing from Philo and end of the month Argentina ST ROSA here we come ! ) re-rate is inevitable ! keep tight ....

Perth, June 10, 2009 (ABN Newswire) -

Otto Energy Limited (ASX EL)(PINK TTEF) provides an update on its exploration drilling programs in Turkey, Italy and Argentina.

Turkey - Edirne Licence

The Kirmizihoyuk-1 exploration well was drilled and encountered gas over a number of zones of between 3 and 15 metres (m) gross thickness at depths of 330-480m. Over the past week, the upper intervals of seven sets of perforations over a total perforated length of 41m were tested. These intervals flowed gas at individual rates of up to 1.5 MMscf per day with some water production. Total combined rates of the individual zones were around 4.8 MMscf per day. The well will be completed as a future producer.

-----------------------------------------
Name of well Kirmizihoyuk-1
Spud date 13 May 2009
Depth of well Total Depth 500m
OEL beneficial interest 35%
-----------------------------------------
The rig has been moved to the Ikihoyuk-2 discovery well for testing, which is expected to commence later this week.

Italy - Cento-Bastiglia Permits

The Gazzata-1 exploration well was drilling at a depth of approximately 2,219m on the evening of 9 June 2009. Drilling will continue today until a minimum depth of 2,300m or until an appropriate geological horizon is reached. An electric logging evaluation program will then be run. The results of the interpretation of wireline logs will be reported once available.

---------------------------------------
Name of well Gazzata-1
Spud date 19 May 2009
Depth of well Approx 2,219m
OEL beneficial interest 50%
---------------------------------------
Argentina - Santa Rosa Licence

Preparations continue at well site for rig arrival. Schedule remains unchanged for the spudding of the first exploration well to occur in late June 2009.

The Company will continue to update the market on a weekly basis each Wednesday during the drilling and testing programs.


Link: http://www.abnnewswire.net/media/en/...OEL-449361.pdf